Cryptocurrencies in income tax returns

Did you know that you must declare your gains from cryptocurrency transactions on your income tax return? In order to correctly declare your movements within the crypto ecosystem, we recommend making a Crypto Tax Report of your operations, in which all the operations and results obtained will be reflected.

In modocripto we work with Cointracking software and we make it available to our customers to perform the report, so it will not be necessary for you to hire any other program.

Income tax return

Do you want us to start preparing your Crypto Tax Report?

Then just fill out the form we have enabled on the website and we will contact you. From there, the process will be as follows:

Given that this year’s Crypto Tax Report may be very complicated depending on the number of DEFI operations, NFTWe cannot give you a fixed price for our service without first reviewing your movements, so in the call you will be asked for a fixed price. Tax advisor In crypto will carry out a questionnaire in order to estimate the time needed to prepare the Report.

A formal proposal with the estimated fees will be sent to you by e-mail. If you agree, you must return it signed and pay 50% of the estimated fees when the work is commissioned; the remaining amount will be paid upon completion of the report.

3.- Check your inbox. We have sent you an email with all the information we need to make the report: CSVs of the exchanges with all the transactions and the keys of the APIs to read them, the public addresses of your wallets, purchases made with your card of the exchange itself, among many others.

If you have any questions regarding how to obtain all this information, please contact us and we will schedule a video call with you to help you.

4.- Whatdo we do once the information has been synchronized?
We perform checks to ensure that there are no “lost or duplicate” transactions.

In case there are any, we will contact you and send you a detail of them so that you can specify the nature of the operation. That is to say if it is a withdrawal, a deposit, scam, etc.

5.- Once we have the report finished, we will be able to calculate the income related to cryptocurrencies or other cryptoassets to be included in the income tax return.

1. How to make the declaration?

Like cryptocurrency managers we use Cointracking to obtain the fiscal report for the year in question.

By having the corporate account we connect to your exchanges, with reading permissions to be able to extract all the necessary information and to be able to make your tax return.

The price of making the declaration with us may vary depending on the operation you have.

It is not the same if you work with a centralized exchange than with different decentralized exchanges, whether you have bought NFTs, obtained Airdrops, Play to Earns, etc.

2. THE PROCESS

The process you must follow is to fill out the form that we have enabled on the website. We will contact you shortly to schedule a video call and start the process, which will consist of the following phases:

Check your inbox. In it we have sent you an email with all the information we need to make the declaration. CSVs of the exchanges with all the transactions, public addresses of your wallets, purchases made with your card from the exchange itself, among many others… If you have doubts about how to obtain all this information, please contact us and we will schedule a video call with you to get all the information.
Prior to the call you must be logged in to all of your exchanges, such as Binance, Coinbase, etc. This will reduce the time of our video call.
What will we do during the video call? Mainly we are going to connect to a tool calledCointracking to your exchanges. With this tool we will obtain all the relevant tax reports to file the tax return.
The connection we will create will be read-only. Therefore, we will not be able to perform any operation within your exchanges other than to consult the transactions.
Once the exchanges are linked, the operations take a few hours to synchronize, so the video call will end as soon as we generate the connection. It is not necessary to wait for the synchronization to finish.
What do we do once we have synchronized the information?
- We perform checks to ensure that there are no missing or duplicate transactions.
- In case there are any, we will send you a report to specify the nature of the operation. That is, if it is a withdrawal, a deposit, etc.
- In this case you must respond within 2 working days in order to close the tax report.
- Once we have the finished report, we will be able to calculate the capital gains or losses related to cryptocurrencies to be included in the income tax return.
Our tax expert will contact you as soon as possible. We will send you an email to request all the relevant tax information to file your tax return. ID card, withholding tax certificate, rental contracts, etc…
You will also receive a link to make the payment corresponding to the declaration.
Once the payment has been made, a video call will be scheduled with the tax expert, who will close the declaration with whom you will review all the documentation, including that related to cryptocurrencies.